HI HB839

Establishes that property damage from construction work is presumed to be an accident unless the damage was intended and expected by the insured, clarifying coverage interpretation standards.

Requires courts to consider a construction professional's objective and reasonable expectations when interpreting ambiguous insurance policy provisions, including the object of the insurance purchase and whether construction defects caused bodily injury or property damage.

Places burden of proof on insurers to demonstrate by preponderance of evidence that policy exclusions, limitations, or conditions bar coverage for construction defect claims.

Requires insurers to defend construction professionals upon receipt of a notice of claim or complaint involving construction defects, and prohibits insurers from withdrawing defense or seeking reimbursement for defense costs unless the right was reserved in writing.

Voids and declares unenforceable any policy provisions excluding coverage for claims arising from bodily injury or property damage that was unknown to the insured at the policy's inception date, even if the injury worsens or progresses during the policy period.